At the moment of typing this, if we look at the ADA 1hr chart, ADA has corrected back a bit & has found support at its Ichimoku Cloud Base Line (Kijun Sen), slightly under that level is its 50EMA. ADA has wicked below the 50EMA twice over the last 6hrs but we have closed above it indicating this is our key level of support for this timeframe. The RSI is at 48 and indicating sideways momentum. The ADX DI SMA is showing that the trend has slowed because the ADX (Yellow Line) is at 28.3 but has cross back under its 10 Period SMA (white Line) which is at 46.2. The +DI (Green Line) is at 16.6 and the -DI (Red Line) is at 17.1 indicating we could easily see the +DI reverse & cross back over the -DI. On the 1hr chart, ADA has two Hagopian Lines which ADA needs to stay above for a continued uptrend. I haven’t added it onto this chart because it would’ve been too messy but near where the Conversion Line (Tenkan Sen) is, that is also where our Bollinger Bands Middle Band is located, so our first port of call is to close a candle above the Conversion Line (Tenkan Sen) and turn that into support. So long as ADA stays above its 50EMA and doesn't close below either of the 2 Hagopian Lines on the 1hr chart, all will be well. We shouldn’t panic when there is a dip. A correction back should be expected after such a large rise over the last couple of days. All those people who were crying yesterday saying “i wanna buy it lower” well….. nows your chance. I hope this is helpful.
Note
Just a quick graphical update about what's happening and we have above and below us as potential support and resistance. Look like we could see sideways continue until BTC slows down. I've tried to cram as much as i can in there without it being too messy, I hope this is helpful 🙏
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.